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Some of the recent “hype” about how advances in technology are forging a “new economy” has evaporated. Interest in “dot.com” start-up companies in the US has waned with the decline in stock market valuations. Some of the more extravagant claims – in particular, that the “new economy” would see the end to recessions – have been tempered by the recent slowdown in the US economy.
This paper defends the idea that universities manufacture knowledge as a public good through the “creative destruction” of social capital. The idea is presented as contemporary restatement of the Humboldtian ideal of the unity of research and teaching: Research “creates” (i.e. concentrates) social capital, which is then “destroyed” (i.e. distributed) through teaching. The defense is made against recent attacks to the integrity of the university as an institution associated with postmodernism and the so-called “new production of knowledge”, which would evaluate universities by client-led performance indicators. The emergence of such indicators is considered and critiqued, followed by some constructive suggestions for indicators specifically designed to measure qualities at which universities uniquely excel.
Collective Investment Schemes (CIS) have been one of the most significant developments in financial intermediation during the past few decades. OECD data indicate that CIS assets have been rising sharply as a share of national income and a share of financial assets in most Member countries. In addition to functioning as an effective vehicle for individuals to implement their preferred investment strategies, CIS already play a major role in providing for retirement income. This role is likely to grow in coming years. Overall, the experience of the investing public as well as policy makers has been highly positive. CIS have enabled even fairly small investors to participate in the strong growth of capital markets in the past two decades. CIS make it possible for relatively small...
The term “university” has a longstanding history, yet its definition remains highly contentious at the turn of the century. According to conventional scholarship, the first university initially appeared as far back as the 12th century with the formation of the University of Paris and the University of Bologna (circa 1150 AD). Other scholars, however, contend that the university may have begun many centuries earlier, depending on the definition employed (Neave, 1999; Welch and Denman, 1997; Patterson, 1997). The intent of this article is to suggest a classification of universities for the 21st Century, with emphasis placed on the university's role in disseminating and advancing knowledge through scholarship and research. Drawing upon major historic events that have shaped universities in their various forms, this article discusses whether universities are designed to cater to market forces or are catalysts for change in an increasingly “knowledge-based” society.
This paper investigates the determinants of money demand (M3) in the euro area. It specifically examines the potential impact of financial and housing wealth on money demand. It tests the hypothesis, whether wealth associated with increases in asset prices is used to finance liquidity holdings in a standard portfolio context. Regressing velocity on interest rates and a wealth variable (a composite of residential property and stocks) within an error-correction framework provides evidence of positive wealth effects from financial and housing assets on money demand in the long run, but no significant impact in the short run. Tests suggests that the long-run and dynamic money demand equations are stable and have not been disrupted by the adoption of the euro on 1 January 1999, while the impact of wealth on money demand may have increased ...
This paper examines the development of policies designed to widen access to higher education policy in the United Kingdom. These policies have evolved in the context of the devolution of political authority to the Scottish Parliament and Assemblies in Wales and Northern Ireland, which has resulted in some policy variation. The paper examines the “post-code premium” paid by the funding authorities to universities based on the students from poorer areas. By using Northern Ireland data the paper demonstrates the major problems to this approach arising from the “ecological fallacy”. The paper concludes by expressing surprise that policy developed with little apparent awareness of these problems....
The paper attempts to explain why single factor explanations of the poverty of nations are usually found to be unsatisfactory. Middle- and low-income countries excluding sub-Saharan Africa, for instance, have an income per head which stands at about one third of the rich countries’ income per head. Yet each of the three items of the Solow model, namely human capital, physical capital (appropriated weighted) and total factor productivity, are each equal to about 70 per cent of the corresponding levels of rich countries. But 70 per cent to the power of three is 35 per cent! Multiplying small or relatively benign handicaps can yield dramatic effects on a country’s income. The paper then moves on to explain each of the three items. It argues that the Lucas paradox on why capital is scarce can readily be solved, once market prices rather than PPP prices are used to assess the return to capital mobility, and on the same ground it argues that PPP calculations bias downwards the TFP of ...
This paper investigates the consequences of Basel II for international capital flows to emerging markets. The paper shows that the magnitude of effects critically depends on a number of assumptions, including: the mapping of risk weights to ratings, assumptions about required return on capital, assumptions about competition and diversion effects and the assumption that minimum capital requirements are binding constraints. The paper provides evidence on each of these assumptions and estimates their effect on interest margins and bank flows. Overall the results suggest that Basel II — taking into account the “Potential Modifications” of November 2001 — will have only a moderate impact on international capital flows ...
Differences in inequality between Latin American countries are not so much caused by globalisation as by a variety of political and economic structures and government policies. Hostile elites have made democracy fragile and are delaying the mass education and tax-driven income redistribution that democratisation and socialism produced in Europe over the past century. Trends in inequality in Latin America are governed by coups and democratic phases. Recent rising inequality in Argentina, Chile and Peru is mostly due to structural changes in the balance of political power triggered by policies of the military and the debt crisis. The demobilisation of labour and the left has led to new political coalitions that have seriously reduced the chances of democracy playing the key role it did in changing Europe. In theory, globalisation can increase inequality through its impact on prices or wages or by curbing the government’s ability to implement policies. In fact there is little evidence ...
The paper investigates the information content of yield curves regarding future inflation, using the example of the G-7 countries. The empirical results show substantial variation of results across countries, and a significant information content is identified for the United States, the United Kingdom, Germany and Canada. The results also vary with the choice of the sample period. Nevertheless, the relationship appears to be structurally stable in Germany and Canada. By contrast, there is evidence for structural instability in the United States and the United Kingdom, possibly reflecting changes in their monetary policy regimes ...
This paper seeks to answer the following question: what is the potential contribution which active labour market policies can make a part of a strategy to combat high and persistent unemployment and the problems of low pay and poverty among the working-age population? In order to answer this question, it is vital to know what works among active policies and in what circumstances. The OECD Secretariat has been working intensively on these questions in recent years and the paper summarises the main results of our work to date.
The structure of the paper is as follows. Section 2 provides some factual background on public spending on labour market policies in OECD countries over the past decade, drawing on an internationally comparable data set which the OECD has developed to monitor trends in this field of public spending. Then I summarise the main results of on-going OECD research into the effectiveness of active labour market policies. My review mainly exploits two sources: (i) the ...
Many OECD Member countries and a large number of the developing countries are suffering from extensive unemployment, both in short and long-term forms. Based on a five-part schema of labour market problems, this paper summarises and evaluates the effectiveness of labour market policies and programmes in the OECD countries and assesses the relevance of the experience to economies in transition, dynamic non-Member economies and developing countries in general. The overall conclusion is that such policies have not proven very effective in dealing with the most pressing problems in most types of economy (the dynamic non- Member economies being the main exception), that is, high and persistent unemployment, both short term and long term. Nevertheless, there are a variety of active labour market policies which are of help with some other types of problem. In general, the developing countries would be well advised not to invest too heavily in socalled passive measures; thus, a social ...
Based on information from the employment records of individual establishments in western
Germany (Federal Republic of Germany before the German unification) between 1977-1988, it is possible to shed some light on the characteristics and determinants of the job generation process. Data for this study were drawn from the Employment Statistics register of the Federal Office of Labour (Bundesanstalt flir Arbeit) and cover almost 80 per cent of total employment.
The central finding of the paper is that trend employment growth is, to a large extent, accommodated by plant openings rather than by the expansion of already existing units. While new establishments are subject to high failure rates, the growth of survivors almost completely offsets job losses due to plant closures. Furthermore, statistical analyses of entries and exits provide some support for the hypothesis that reduced wage differentials within any sector negatively affect the pace of entry of new establishments.
These results could be relevant for the current debate on the determinants of the poor employment performance of Germany in the 1980s. In pai1icular, they raise the possibility that reduced wage differentials, associated with labour market policies and collectivistic wage agreements in the 1980s, played an important role in lowering the job generation potential of western Germany.
Over the last decade, employment law in the United States has ceased to be governed solely by the right to 11 at will 11 termination on either side. As a result of a series of decisions in the civil courts of the various states, employers have become liable for damages - often very heavy - for dismissals which have been held to be unfair. A dismissal may be considered 11 unfair 11 because it violates public policy, because it breaches an implied contract or because it breaches an implied covenant of good faith and fair dealing. The resultant restrictions on the right to fire are reminiscent of employment security laws in Europe.